3 valuations in Material ledger

Hi,
My client's requirement is as follows:
1) Legal valuation has to be in Local currency but on Actual Costing
2) Profit Center Valuation in Local currency but on standard costing - same as Group valuation
3) Group Valuation in Group currency in standard costing - Group valuation
Is this possible when, Actual costing Material ledger implemented?
I imagin, Legal valuation field in Material Master will be updated by periodic unit price when we run CKMLCP.  Then Profit center valuation field in the Material Master will be updated when we run CK40N in standard costing PC valuation costing run.  Then again we will run ck40n in standard costing for Group valuation to update Group valuation in Material Master.
If my client opts to run ck40n for legal valuation, then he should also be able to mark and release standard cost new price, in Legal valuation field of material master and actual costing will not release standard price for new period.
The requirement is typically complicated, as my client wants to maintain his Global template, though one country comes under actual costing requirement.
I would like to dig out answers from real time experience please.
Cheers,
Ashok

I can give you some information but not everything.  I have gone through the deployment of material ledger using 3 valuations, but not the ones you are using.  We used Local, Group and Group at Group.  All 3 are at actual costing.  What this means is that the local currency is the currency in the country where the plant exists.  The group valuation is a straight conversion to US dollars from the local currency based on the currency conversion tables M and P rates.  Note that both of these first two currencies can include intercompany profit if reflected on the transferring sales order between companies.  The Group at Group is the US dollar conversion without the intercompany profit.  We find this works for our business.
The other thing about material ledger is that you need to have a standard cost estimate so that material ledger can keep track of the cos component structure.  The way it works is as follows:
Say the standard estimate shows labor=$100, materials=$200 and overhead=$300 for a total cost of $600.  All transactions in the month using this material use the $600 standard.  Now, when material ledger is run at month end, the PUP (periodc unit price) is calculated and let us assume the PUP values are labor=$150, materials=$250, overhead=$350 for a total PUP of $750.  Material ledger already has tables with the details of the standard components against every transaction.  Now it will apply the remaining adjustments totalling $150 to the proper cost components for COPA purposes.  This is pushed to COPA using transaction KE27.  Think of it like this...Actual cost is equal to standard ($600) plus/minus variances ($150). 
Therefore, you always should have a standard cost estimate when using material ledger.  At least that is my usage and understanding.  I hope I provided useful information for you in some way.
David

Similar Messages

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    I came across SAP Forums, which claim that Material Ledger is the FIFO Valuation on real-time basis. However, this doesn't seem to be true. The Goods Issued are assigned the Periodic Unit Price (calculated above -- i.e the Weighted Average Price ).
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    -- Thanks

    Hi Kenny ,
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    Ending Inventory is valued  as per FIFO calculated through following steps:
         Run the price calculation (Txn: KSII) u2013 check that all      auxiliary Cost centers are zero
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    Also, hope your Price Determination is "3" and price control is "S" in Material Master..
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  • Material Ledger Valuation

    Is it possible to have 2 or more standard prices for a single material e.g. one price for imported material and one for in-house produced material. If it is possible then what will be the effect of this when material ledger is activated?

    Hi,
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    Valuation Type-2 for in-house produced material
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    Material master price control =S for Valuation Type-2,
    Material master price control =V without valuation type (header level).
    Price determination indicator = 3 for header as well as each valuation type.
    Good receipts and Goods Issue will happen for each valuation type.
    At month end after Actual Costing Run. the material valuation will happen:
    Header level (weighted MAV of both the valuation types)
    For Val type-1(weighted MAV of this valuation type only)
    For Val type-2(weighted MAV of this valuation type only)
    Price variances of valuation type will be carry forward to next level, if this product is consumed at next level.
    You can find the Actual costs at each valuation type level in MM03 or CKM3 or CKM3N.
    Hope the above example provides some inputs to you.
    Please check and confirm.
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  • Split valuation - Header Material - Price det. 3 - Matl. ledger active

    Hi,
    We have split valuation along with Material ledger and Actual costing active.
    My client wants to keep price determination 3 / V for Header Material as it defaults 3 / S while creating subbordinate materials i.e., by valuation types.
    Per SAP, the requirement is Price determination 2 and Price control is V for Header Material.
    My client questions, what is wrong in keeping 3 in Header level?
    Do you have any input for this? as I have only answer, as it's the standard configuration and impact unknown.
    Ashok

    Hi Ashok ,
    The materials with split valuation are there in the MM valuation tables MBEW, EBEW, QBEW with the field 'valuation type' BWTAR filled . The header segment (with field valuation type blank) is only for intermal use of the system .
    For such materials with valuation type blank (the header segment of material with split valuation) in Material Ledger only the table CKMLPR contains information, the rest of the tables are empty .
    The header segment has always price control V. However, the price of the header segment is NOT a moving average price. It is the weighted average price of all valuation types.
    Therefore with a Split valuation scenario the materials are recorded in the system with the field BWTAR not blank and with its own price control independently of the header segment
    Hence , i think its immaterial  of what ever Price Determination you put in Material Master  for header material and hence SAP has recommended "2" for the same . Having Price Determination "3" will not have any impact.. i believe...
    Regards
    Sarada
    Edited by: Sarada Sankar Sil on Nov 16, 2010 9:48 AM

  • Material ledger is not active in valuation area C002

    Dear All,
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    Hi
    For a Particular material, Material Ledger is active or not? Can be checked in Accountig view of Material Master.
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  • Material ledger is not active in valuation area S001

    Dear All,
    I have created a Scheduling Agreement & did the GR. When I am doing invoice posting system is throwing error as Material ledger is not active in valuation area S001
    What might be wrong here ? For same material if I create PO then everything is working fine. Problem is only with SA.
    regds,
    CB

    Hi,
    Please check your Material Ledger Activation  setting for the Valuation AreaC002 in T-code OMX1. The Check box for the ML activation against the Valuation Area-S001 may be ticked.  After activation/ticking this box, T-code CKMSTART was not executed to complete the ML activation.  If you want the activation of Material Ledger, you have to run T-code CKMSTART to complete this ML activation or Otherwise uncheck this box.  I hope this step will resolve your issue.
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  • Valuation area not yet productive with material ledger

    While doing goods receipt at MB1C,i got the below error:
    The description of the error is given below
    Valuation area XXX2 not yet productive with material ledger
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    The material ledger has been activated for the valuation area but material data has not yet been converted in this valuation area.
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    If you want to work with the material ledger, choose Accounting -> Controlling -> Actual Costing/Material Ledger -> Utilities -> Production Startup.
    There you can convert the data for the material ledger by following the instructions in the online documentation.
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    See also:
    Actual Costing/Material Ledger in the SAP Library.
    The implementation guide for Actual Costing/Material Ledger.
    Can you kindly suggest me how to fix this error.
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    Sabera

    Hi Sabera,
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    If you already activated Valution area in to Productive Statge.
    Then go to T.Code OMX1 and for your valuation area XXX2 tick the ML activation box.
    the error wont come
    regards
    srikanth

  • Material Ledger Functionality with Non Valuated Sales Order Stock

    We are in the process of setting up Make To Order (MTO) with Non Valuated Sales Order Stock. We currently use the Material Ledger in our other businesses that use Process Orders.
    Does the Material Ledger functionality support MTO with Non Valuated Sales Order Stock? I have been testing this and have not yet figured out how to get ML postings. We are using production orders that settle to sales orders. We do not bring this into inventory, the costs reside on the sales order.
    If this functionality does exist, I would assume I need to configure the Material Update Structure but I cannot find any documentation on this.
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    Hi Greg,
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    Generally SAP sees in the valuated sales order stocks (avaliable since 3,1 or something) a great improvement and no real reason to use still the non-valuated scenario.
    best regards,
                          Udo

  • Material Ledger Conversion in a Parallel Valuation Scenario

    Hi All,
    I'm working in a scenario where the Material Ledger is already active (without multiple currencies - in other words, with the local currency).
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    We have already read SAP Note 120380 - "Subsequent activation of multiple valuation approaches" where the preservation of ML historical data would involve a SAP intervention.
    It is not clear which kind of activities SAP should do in order to preserve ML historical data, i.e. which kind of data should be involved in a potential ML conversion data process.
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    Regards, ALDO26X1

    Hi Udo,
    first of all thanks very much for your answer.
    As described in the note 120380 we are in the following scenario:
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    B) You now require historical data: In this scenario, you must set a new currency key in the ML tables. The fields are filled as start
    values with the posted transaction data in local currency (depending on the currency, either transferred or translated). This procedure is
    very complicated and can be carried out on a project basis only. Contact SAP if you want to do this.
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    Kind regards, ALDO26X1

  • Alternative valuation run methodolgy for material ledger

    Hi Experts
    Does someone can explain me how to customize alternative valuation run in SAP and how to use it.
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    Can I run for same plant and same period the AVR in CKMLCP ?
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    Djamel

    Hi Djamel ,
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    Regards
    Sarada

  • Error Message :Valuation area 1000 not yet productive with material ledger

    Dear Floks,
    I need some clarification to get rid of this error message and move further.
    While saving the PGI I am facing the follwoing error message: "Valuation area 1000 not yet productive with material ledger----
    The material ledger has been activated for the valuation area but
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    Plese respond with the solutions ASAP.
    Thanks in advance.
    Regards
    ANGKS

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    1) OMX1: Check if ML is active against the plant IF NOT
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  • Valuation area HDQF not yet productive with material ledger

    Dear all,
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    Hi Quang,
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    Best regards, Takashi

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    I ran RSA3 for 0CO_PC_ACT_02 and 0CO_PC_ACT_05 and I get 1000 records respectively. I ran the info package to load this data into BW to 0COPC_C04 . I am getting a message in the status tab " Job termination in the source system". When I look at the job log , it says " Material ledger not active for abcd Valuation area".
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  • GR/IR account problem with material ledger

    Hi,
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